Cyclical stocks earnings recap: 8 out of 16 beat market consensus (NYSEARCA:XLY)

The past week saw big consumer cyclical names reporting their Q1 earnings results. Out of the 16 cyclical stocks in the Consumer Discretionary Select Sector SPDR Fund (XLY), 8 beat market estimates, 4 missed, and the remaining 4 fell short in meeting either sales or earnings consensus.

Among the winners were companies in the hotel and leisure industry such as Domino’s Pizza, MGM Resorts, Expedia, and Booking’s, which all surpassed market expectations. However, Starbucks, Yum! Brands, and Caesars Entertainment failed to meet the mark.

Domino’s topped Q1 expectations with strong comparable sales, while Yum! Brands reported a drop in same-store sales affecting their results. Starbucks also faced challenges after revising their FY guidance.

McDonald’s had in-line revenue but missed bottom-line estimates, with slow growth across key metrics. MGM Resorts saw a boost in revenue from Macau, driving their stock up.

Booking’s rallied after-hours, outperforming Expedia, although both beat expectations. Caesars missed earnings estimates, reporting a net loss, while Marriot International showed mixed results.

In the retail sector, eBay and Amazon beat market consensus, while Etsy struggled due to a challenging consumer environment. Amazon’s strong AWS business propelled their stock, while eBay faced soft Q2 guidance.

Garmin and Aptiv saw the highest gains among the cyclical stocks, while Starbucks and Etsy were the biggest losers last week. The Consumer Discretionary Select Sector SPDR Fund (XLY) gained around 1.02% during the week.

Looking ahead, upcoming earnings reports to watch include Airbnb, Wynn Resorts, and Tapestry in the consumer discretionary sector.